1. RED TAPE REDUCTION WORKSHOP 26 MARCH 2014 REGENT HOTEL NOPINKIE BENTSILE the dti Incentives

2. “A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and development, decent employment and equity, built on the full potential of all citizens”. Vision

3. 3 Mission the dti’s revised Mission is to: Promote structural transformation towards a dynamic industrial and globally competitive economy. Provide a predictable, competitive, equitable and socially responsible environment for investment, trade and enterprise development. Broaden participation in the economy to strengthen economic development. Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to the needs of South Africa’s economic citizens.

4. Strategic Goals Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner Promote a professional, ethical, dynamic, competitive and customer- focused working environment that ensures effective and efficient service delivery

5. 5 the dti Clusters The work of the dti is organised in terms of the following clusters:- Industrial Development – development of policies & strategies that promote sector competitiveness, growth, job creation & efficient administration of support measures Trade, Investment and Exports - strengthening trade & investment links with key economies; & fostering African development, including through regional and continental integration & development co-operation in line with the New Partnership for African’s Development (NEPAD) Broadening Participation - developing interventions & strategies that promote enterprise growth, empowerment & equity Regulation - development & implementation of coherent, predictable & transparent regulatory solutions that facilitate easy access to redress and efficient regulatory services for economic citizens. Administration and Co-ordination - effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

6. INCENTIVE SCHEMES CLUSTERINCENTIVE SCHEME MANUFACTURING INVESTMENT Enterprise Investment Programme (EIP) Aquaculture Development and Enhancement Programme 12i Tax Incentive Automotive Incentive Scheme (AIS) People-carrier Automotive Investment Scheme (P-AIS) COMPETITIVENESS INVESTMENT Manufacturing Competitiveness Enhancement Programme (MCEP) Sector Specific Assistance Scheme (SSAS) Export Marketing & Investment Assistance (EMIA) Capital Projects Feasibility Programme (CPFP) SERVICES INVESTMENT Film & Television Production Business Process Services (BPS) BROADENING PARTICIPATION Black Business Supplier Development Programme (BBSDP) Co-operative Incentive Scheme (CIS) Incubator Support Programme (ISP) BROADENING PARTICIPATION Critical Infrastructure Programme IDZs and SEZs

7. MANUFACTURING CLUSTER PRODUCTPURPOSETARGETOFFERING ENTERPRISE INVESTMENT PROGRAMME To attract investment in the manufacturing sector Manufacturers with emphasis on lead sectors. 30%- 15% grant for investment in land & buildings, machinery & equipment and customised commercial vehicles 15% transportation costs for machinery & equipment by FDI AQUACULTURE DEVELOPMENT AND ENHANCEMENT PROGRAMME To stimulate investment in the aquaculture sector with the intention to increase production, create jobs, encourage geographical spread and broaden participation Primary aquaculture operations, eg nursery Secondary aquaculture operations, eg. Processing Ancillary aquaculture operations, eg feed manufacturing, R&D 40-20% Machinery and equipment, bulk infrastructure, land and/or buildings, leasehold improvements and competitiveness improvement activities 7

8. MANUFACTURING CLUSTER PRODUCTPURPOSETARGETINCENTIVE AUTOMOTIVE INCENTIVE SCHEME (AIS ) To attract investment in light motor vehicles, and components manufacturing. Motor vehicle manufacturers producing 50,000 units per plant within 3 years Component manufacturers. 20-30% grant for qualifying investment in machinery & equipment and buildings. PEOPLE CARRIER AUTOMOTIVE INVESTMENT SCHEME To attract investment in People carrier manufacturers / assemblers and automotive component manufacturers Vehicle Assemblers for at least a 10 seater or more including the driver. Component manufactures who secured markets locally and or internationally. Should achieve at least 25% of turnover or R10m annually by the end of the first year 20-30% grant for qualifying investment in machinery & equipment and buildings. 12i INVESTMENT AND TRAINING ALLOWANCE To promote industrial upgrading and new investment in manufacturing Medium to large manufacturers with investment between R30m and R1.5bn Training allowance: max R36 000 per person Max 55% of qualifying investment costs in machinery & equipment. 8

9. AIS component manufacturers performance per province 9 Key Achievements for AIS 2012/2013 COMPONENTS MANUFACTURERS No of Projects Approved Grant Approved (R) Investment Approved (R) Sustained Jobs Projected Jobs 2011/12 Eastern Cape 32186 538 754839 873 8518 7831 732 Gauteng 37283 268 1181 143 363 6538 0122 416 KwaZulu-Natal 1318 502 50989 665 8065 163159 North West 514 017 30556 423 69989759 Western Cape 15 008 38816 694 6250100 Total 88507 335 0732 146 021 63422 8554 466 2012/13 Eastern Cape 1149 921 600220 698 4942 414 145 Gauteng 662 811 063260 870 5401 583 227 KwaZulu-Natal 67 682 17538 410 8731 780 120 North West 12 804 55814 022 788317 50 Western Cape 12 460 00012 300 000171 40 Total 25125 679 396546 302 6956 265 582

10. 10 ORIGINAL EQUIPMENT MANUFACTURERS No of Projects Approved Grant Approved (R) Investment Approved (R) Sustained Jobs Projected Jobs 2011/12 Eastern Cape 259 003 153261 824 5162 051283 Gauteng 1664 500 3152 215 001 0501 668528 KwaZulu-Natal 374 699 373313 376 70314 60979 Grand Total 6798 202 8412 790 202 26918 328890 2012/13 Eastern Cape 2260 249 4001 173 397 5982 205110 Gauteng 119 721 25078 885 0002 05070 KwaZulu-Natal 11 344 2796 721 3966 4655 Grand Total 4281 314 9291 259 003 99410 720185 Key Achievements for AIS 2012/2013 AIS Original Equipment Manufacturers performance per province

11. Key Achievements for MIP 2012/2013 11 12I Provincial approvals 2011/12 and 2012/13 Gauteng: 2012/13: 4 enterprises (R769 million tax; R17.2m training allowances; R1.6m investment) 2011/12: 5 enterprises (R1.4 billion tax ; R32m training allowances; R4.3b investment) Gauteng: 2012/13: 4 enterprises (R769 million tax; R17.2m training allowances; R1.6m investment) 2011/12: 5 enterprises (R1.4 billion tax ; R32m training allowances; R4.3b investment) Western Cape: 2012/13: 1 enterprise (R121 million tax; R2.5m training allowances; R220m investment) 2011/12: 1 enterprise (R67 million tax; R1.2m training allowances; R147m investment) Western Cape: 2012/13: 1 enterprise (R121 million tax; R2.5m training allowances; R220m investment) 2011/12: 1 enterprise (R67 million tax; R1.2m training allowances; R147m investment) KwaZulu-Natal 2012/13: 3 enterprises (R342 million tax; R6.6m training allowances; R943.8 investment 2011/12: 1 enterprise (R57.7 tax; R216 000 training allowances; R105m investment) KwaZulu-Natal 2012/13: 3 enterprises (R342 million tax; R6.6m training allowances; R943.8 investment 2011/12: 1 enterprise (R57.7 tax; R216 000 training allowances; R105m investment) Free State: 2012/13: 1 enterprise (R429 million tax; R1.3m training allowances); R1.2b investment 2011/12: 2 enterprises (R582.7 million tax; R7.3m training allowances; R9.5b investment) Free State: 2012/13: 1 enterprise (R429 million tax; R1.3m training allowances); R1.2b investment 2011/12: 2 enterprises (R582.7 million tax; R7.3m training allowances; R9.5b investment) North West: 2012/13: 1 enterprise (R550 million tax; R7.2m training allowances; R2.7b investment) 2011/12: No approvals North West: 2012/13: 1 enterprise (R550 million tax; R7.2m training allowances; R2.7b investment) 2011/12: No approvals Mpumalanga: 2012/13: No approvals 2011/12: 2 enterprises (R789.7 million tax; R4.7m training allowances; R3.1b investment) Mpumalanga: 2012/13: No approvals 2011/12: 2 enterprises (R789.7 million tax; R4.7m training allowances; R3.1b investment) Limpopo: 2012/13: No approvals 2011/12: 1 enterprises ( R441 million tax; R6.5m training allowances; R1.4b investment) Limpopo: 2012/13: No approvals 2011/12: 1 enterprises ( R441 million tax; R6.5m training allowances; R1.4b investment) Eastern Cape: 2012/13: 2 enterprises (R1.1 billion tax; R15.2m training allowances; R3.4b investment) 2011/12: 2 enterprises (R1.45 billion tax; R8.8m training allowances; R3.9b investment) Eastern Cape: 2012/13: 2 enterprises (R1.1 billion tax; R15.2m training allowances; R3.4b investment) 2011/12: 2 enterprises (R1.45 billion tax; R8.8m training allowances; R3.9b investment) TOTALS: 2012/13: 12 (R3.3 billion tax; R50m training allowances; R10.2b investment) 2011/12: 14 (R4.8 billion tax; R61m training allowances); R22.4 billion investment TOTALS: 2012/13: 12 (R3.3 billion tax; R50m training allowances; R10.2b investment) 2011/12: 14 (R4.8 billion tax; R61m training allowances); R22.4 billion investment

12. COMPETITIVENESS CLUSTER PRODUCTPURPOSETARGETOFFERING Manufacturing Competitiveness Enhancement Programme (MCEP) Improve Manufacturing Competitiveness South African Manufacturers and Services Supporting Manufacturing Cost sharing grant for Capital investment; Resource efficiency improvement; Enterprise-level competitiveness improvement; Feasibility studies; Cluster competitiveness improvement; Pre- and post-dispatch working capital facility Export Marketing and Investment Assistance (EMIA ) To develop export market for SA goods and services and recruit FDI Export ready manufacturers and service providers. Cost sharing grant for exhibition costs, marketing material & research in foreign markets Capital Projects Feasibility Programme Promote the export of South African capital goods and services Capital goods sectors and consulting engineers Cost sharing grant (max 55%) for feasibility study costs 12

13. KEY ACHIEVEMENTS FOR MCEP 2012/2013 13 MCEP PROVINCIAL SPREAD  Largest MCEP beneficiaries are enterprises based in GP, WC, KZN & EC  Through the dti satellite offices & partnerships, there are targeted marketing campaigns in other provinces which resulted in notable increases.

14. KEY ACHIEVEMENTS FOR EMIA 2012/2013 14 EMIA PROVINCIAL SPREAD (Values in R’000s) Gauteng, KZN and WC had highest approvals, but increases in approvals from 2011/12 noted for Limpopo, Mpumalanga, EC and NW 2012/13 2011/12

15. EMIA SSAS 2012/2013 425 Enterprises R31 Million paid out 2011/2012 434 Enterprises R24 Million paid out CAPITAL PROJECTS FEASIBILITY STUDY From 2008/09 to 2012/13, CFPF supported a total of 31 feasibility studies to a total value of R111 million 2012/13 R39.5 m value of approved feasibility studies R25 million paid out in actual claims to 9 engineering services companies firms approved to conduct f 2011/12 R25 m value of approved feasibility studies R15 million paid out in actual claims to 8 engineering services companies sibilistudieor potential projects  R39.5 m value of approved feasi bility studies  R25 million paid out in actual claims to engineering services companies 15

16. SERVICES CLUSTER PRODUCTPURPOSETARGETOFFERING BUSINESS PROCESS SERVICES (BPS) Encourage the creation of employment opportunities from the offshore market Enterprises offering Business Process Services to the offshore market A baseline incentive which offers a 3-year operational expenditure on actual jobs created A graduated bonus incentive which is offered for greater job creation paid once in the year in which the bonus level is first achieved. FILM AND TV PRODUCTION To grow the film industry to create jobs and to transfer skills Local and foreign film producers 20% of Qualifying South African Production Expenditure (QSAPE) 25-35% of Qualifying South African Production Expenditure for local films 16

17. SERVICES INCENTIVES BPS 12 Projects approved R41 Million committed R1.2 Billion projected investment 3936 jobs created FILM & TV PRODUCTION 70 Productions approved R386 Million committed 17

18. BROADENING CLUSTER PRODUCTPURPOSETARGETOFFERING BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP) Broader participation of black-owned SMMEs through provision of business development services Majority black owned entities R250k to R35m turnover 1 year trading 80:20 cost sharing grant for business development services 50:50 cost sharing grant for tools, machinery and equipment CO-OPERATIVE INCENTIVE SCHEME (CIS) Broader participation by promoting the development of cooperatives Registered co-operative Operate in the emerging sector Manufacturing, retail & services 100% cost sharing grant for machinery, equipment & business development services INCUBATION SUPPORT PROGRAMME (ISP) Encourage private sector partnership with government to: Support incubators in order to develop SMMEs Nurture SMMEs into sustainable enterprises that can provide employment and contribute to economic growth South African registered legal entity Registered higher education or further education institution Licensed and/or registered science council 50:50 cost-sharing support for large private sector investors 60:40 cost-sharing support for SMMEs Capped at a maximum of R10 million per financial year over a 3 year period. 18

19. Key Achievements for BBSDP 2012/2013 19 BBSDP approvals per province Gauteng had the largest number and value of approvals

20. Key Achievements for CIS 2012/2013 20 CIS approvals per province Eastern Cape had the highest number and value of approvals

21. Key Achievements for ISP 2012/2013 21 ISP approvals per province Gauteng: 5 incubators R41 262 895 Gauteng: 5 incubators R41 262 895 Eastern Cape: 4 incubators R64 312 275 Eastern Cape: 4 incubators R64 312 275 Western Cape: 4 incubators R36 803 911 Western Cape: 4 incubators R36 803 911 Free State: 1 incubator R26 252 722 Free State: 1 incubator R26 252 722

22. INFRASTRUCTURE CLUSTER PRODUCTPURPOSETARGETOFFERING CRITICAL INFRASTRUCTURE PROGRAMME (CIP) To leverage strategic investment projects by financially supporting critical infrastructure. Transport systems Electricity and distribution systems Telecommunications systems Transmission systems Sewage systems Waste storage, disposal and treatment systems Fuel supply systems Contractors Municipalities Public private partnerships 30% for direct costs incurred in demolitiong and constructing infrastructure. 22

23. CIP KEY ACHIEVEMENTS 23 2011/2012 06 approved CIP applications 2011/2012 06 approved CIP applications 2012/2013

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25. 25 CONTACT DETAILS Website: www.thedti.gov.zawww.thedti.gov.za Government incentives website: www.investmentincentives.co.za